Navi Mumbai Surges in India's Commercial Real Estate Market: IT Parks Lead the Way

India’s commercial real estate market is witnessing a sharp reordering of growth hubs — with Navi Mumbai emerging as the fastest-growing city, IT Parks leading rental performance, and Delhi recording the highest short-term gains — according to the second edition of the IIMB-CRE Matrix Commercial Property Rental Index (CPRI).

The report, India’s first Pan-India Composite Rental Index for Grade A/A+ office spaces, highlights new trends in commercial real estate which is seeing rising institutional interest. Jointly released by the Indian Institute of Management Bangalore (IIMB) and real estate data firm CRE Matrix, the index covers 930 million sq ft of office space across 10 Tier-I cities and over 45 quarters of rental data.

The report factors in the time value of money and transaction-level concessions to reflect true effective rentals — offering the most robust view yet of India’s premium office leasing trends.

Baseline effective rentals for Grade A/A+ office spaces across India grew at a 6.6% compound annual growth rate (CAGR) over the past three years. With a 3-year CAGR of 7.4%, IT parks outpaced all other office categories. This segment also represents 42% of India’s top-grade office stock, underscoring its influence on overall market trends.

In terms of city-wise rankings, it was Navi Mumbai which posted the highest 3-year rental CAGR of 10.4%, overtaking traditional metros as the fastest-growing rental market. While experiencing rental decline for four consecutive quarters, Bengaluru continues to lead in absolute rental index values. Its Outer Ring Road micro-market was the top long-term performer with a 5-year CAGR of 7.5%.

Central Business District Mumbai recorded the strongest year-on-year rental jump at 17.6%, reflecting strong rebound in demand. Delhi on the other hand led in quarter-on-quarter rental growth over the last two quarters, signaling near-term traction.

“With the 2nd edition of CPRI, we are proud to launch the Pan India Composite Index for the very first time — a much-needed national benchmark for India’s commercial office leasing market. While the index confirms the continued dominance of Bengaluru and Mumbai, it also shines a light on the rise of younger cities like Navi Mumbai and Noida that are now key drivers of rental growth across the country,” said Abhishek Kiran Gupta, CEO & Co-founder, CRE Matrix.

The IIMB-CRE Matrix CPRI is built on real transaction-level data and statistically rigorous analysis. In the latest edition rentals are now calculated based on net present value, accounting for concessions like rent-free periods, fit-outs, security deposits. This ensures a more accurate reflection of effective rentals, rather than headline or quoted rents.

India’s commercial leasing sector is rapidly institutionalizing — with growing interest from global real estate investment trusts (REITs), pension funds, and private equity. Yet until now, the lack of a reliable rental benchmark made valuation, forecasting, and decision-making complex. By combining academic rigor with market data, the IIMB-CRE Matrix CPRI will serve as a key decision-making tool for institutional investors, policymakers, real estate developers, and corporate occupiers.